Real estate investment in Spain: rebound in the first half of 2024

Although it may seem incredible, 2024 is already in its final stretch, which in KM2 Real Estate Services makes us think that this is the ideal time to look back and reflect on what has been a year full of challenges and opportunities in the real estate sector.

We analyze the changes that have occurred in real estate investment in our country and what are the trends that mark the present and future of the market, below.

Real estate investment exceeds 5.5 billion euros

According to Coldwell Banker Richard Ellis (CBRE) – a U.S.-based commercial real estate investment and services company – during the first half of the year, real estate investment in Spain exceeded 5.5 billion euros, slightly above the 5.3 billion recorded the previous year.

And if we analyze the key sectors in detail?

• Hotel: it accounted for 25% of total investment. The islands, both the Canary Islands and the Balearic Islands, continued to be the preferred destinations for investors in the tourism market.

• Retail: reached an investment of 1,076 million euros, an increase of 89% compared to the same period in 2023. Shopping center transactions played a key role in this growth.

• Offices: recorded an investment of more than 830 million euros, 14% more than in 2023. Medium-sized companies emphasized their commitment to the purchase of offices for their own use in strategic locations.

• Industrial: reached 407 million euros, although it experienced a slight decrease compared to the previous year.

• Healthcare: remained stable, with 275 million euros in investments. The alternative sectors (education and sports) doubled their volume compared to 2023, reaching 32 million euros.

• Living: led the change in the real estate market by accumulating nearly €1.5 billion. Deals were concentrated in flex living, student residences, senior living and affordable rentals. Moreover, this trend is expected to continue to expand, with 48% of European investors planning to increase their share in this segment.

Madrid and Barcelona: hotspots, but with competition

Although Madrid and Barcelona maintained their attractiveness in the first half of 2024, more than half of real estate investment was concentrated outside these cities, with particular interest in regions such as:

1. Andalusia.
2. The islands, both the Canary Islands and the Balearic Islands.

This trend marks a change with respect to the figures recorded in 2019, something that reinforces the growing interest in other locations in Spain.

Family office: key players in real estate investment in Spain

So far in 2024, family offices and private investors stood out in the investment landscape. In a context of tighter credit, these highly liquid investors led transactions, outperforming institutional investors.

This profile accounted for 18% of the total volume of transactions, compared to 5% in 2022 and 12% in 2023.

However, the Spanish investor also played a crucial role, leading 58% of investments in the first half of the year.

Stabilizing returns

After the upward corrections in 2022, returns in the main real estate sectors stabilized in the first half of 2024.

Despite inflation and rising interest rates that made access to financing more expensive over the past two years, international monetary policies began to alleviate these effects.

The European real estate market, driven by strong domestic consumption and solid exports, showed signs of recovery.

In addition, CBRE forecasts an increase in investment activity in the second half of 2024, with an estimated growth of 10%, which would bring total investment to €12.5 billion by year-end.

Stay informed with KM2 Real Estate Services

For our part, we will closely follow the evolution of the market for the remainder of the year. But for the time being, we invite you to explore our previous blog posts, where we address various topics of interest.

If you prefer personalized advice, do not hesitate to contact any of our offices in Barcelona or Madrid, where our team of experts will be happy to help you.

Te esperamos en:

• Barcelona: C/ de Balmes, 150, 2º1ª.
• Madrid: C. Serrano, 51, 4ª Pl. Right.